Basis points

A basis point is one hundredth of a percentage point, so 100 basis points equal 1%. Traders and protocols use the term because it removes ambiguity when percentages get small or get compared to each other, like the difference between a 0.25% and 0.30% fee. In crypto, you'll see it most on lending platforms and DEXs: Aave might charge a 30 basis point (0.30%) flash loan fee, or a stablecoin swap on Curve might have slippage of just 4 basis points (0.04%). Shortened to "bps" and pronounced "bips," it's the standard unit for describing fees, interest rates, and price moves without arguing over decimal points.